This week in crypto: Prices rebound as macro and micro factors align

Crypto assets continue to rise as global markets turn “risk-on” - but can the momentum continue? In this week’s Crypto Verse, we review the week in crypto and take a look at the charts of Bitcoin, Ether, and Litecoin.

Prices rebound as macro and micro factors align

Crypto assets took another leg higher last week, as both macro and micro factors align for a more bullish market backdrop. The volatility sparked by the cascading failures of prominent crypto-businesses, chiefly FTX, has subsided, ostensibly lowering the systemic risks to the crypto industry.

Meanwhile, the broader macroeconomic drivers, high inflation and aggressive monetary policy tightening to dampen inflation, are shifting. There are growing signs that inflation in the US is trending lower and interest rate markets are discounting an imminent end to the rate hiking cycle. Not only that, but rates markets are implying rate cuts by the end of the year, as the US economy confronts a possible recession.

Three cryptos to watch

• Bitcoin

Bitcoin prices made new highs last week. Price broke through technical resistance at roughly $21,500 and $22,400 as the crypto carves out a short-term uptrend. The RSI is diverging from price, indicating a slowdown in upside momentum. The next key level of resistance is just above $25,000.

Bitcoin daily chart

• Ether

Ether's price also extended its rally last week, however, there was less upside momentum than what was seen in Bitcoin. Price failed to break through resistance of $1680 but support has held at $1500. If the former breaks, $2000 may be the next level to watch.

Ether daily chart

• Litecoin

The bullish in the crypto markets hasn’t filtered through to some of the smaller alt-coins.

Litecoin prices have pushed higher with the short-term trend to the upside. However, the upside momentum is weaker. Price is testing resistance at around $91 while support could be found at $81.57.

Litecoin daily chart